Online gambling firm Bwin to cut more as its losses widen

German ace Gotze celebrates winner as World Cup betting boosted revenue for Bwin[AP]

Bwin.Party is facing heightened pressure from US shareholder Spring Owl which has been a fierce critic of how the company is run and is unhappy at the falling share price, down about a third this year.

A more fundamental approach is needed to turn around our commercial and operational performance

Chief executive Norbert Teufelberger

The owner of the Bwin.com and PartyPoker.com brands yesterday reported operating losses of £83million in the six months ending June 30, compared with losses of £3.9million previously.

Overall revenues were down from £273million to £253million, despite the World Cup – featuring stars such as Germany’s Mario Gotze who scored the winning goal in extra time of the final – helping lift sports betting revenues from £95million to £101million.

Bwin said it plans to cuts costs by £12million next year on top of £24million cuts this year.

The shares surged 10p to 90¼p, topping the list of FTSE 250 risers.

Chief executive Norbert Teufelberger said: “Trading during the first half of 2014 was mixed with a solid performance from sports betting more than offset by year-on-year declines in casino and poker.

“We are on-track with cost-saving measures. However it is clear that a more fundamental approach is needed to turn around our commercial and operational performance.”

Revenues from casino and games fell from £90million to £82.5million, poker dropped from £51million to £35million and bingo revenues from £22million to £21.3million.